HomeUncategorizedBank of England considers clampdown on foreign bank branches- FT

Bank of England considers clampdown on foreign bank branches- FT

July 4 (Reuters) – The Bank of England is considering plans to force more international banks to set up subsidiaries in Britain, The Financial Times reported on Tuesday.

The BOE is considering the plan as part of its review of the collapse earlier this year of US bank Silicon Valley Bank, the newspaper reported, citing people familiar with the matter.

The move could reduce the thresholds required for foreign banks with business operations in the country to set up subsidiaries, the newspaper said. It notes that subsidiaries, such as SVB that are located in London, make it easier for local regulators to take control in the event of failure.

Nathanael Benjamin, managing director of international banking and authorization for the BOE on Monday said the central bank will consider the threshold for a foreign bank branch to become a subsidiary.

Following the collapse of its parent company in the US, the UK branch of Silicon Valley Bank was sold to HSBC (HSBA.L) in March to avoid disrupting UK customers.

The Bank of England did not immediately respond to a request for comment.

Reporting by Chandni Shah in Bengaluru; Editing by Josie Kao and Andrea Ricci

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